India Inc and direct selling associations on Tuesday criticised the arrest of Amway India chairman and chief executive William S Pinckney, who was taken in custody on Monday by the Andhra Pradesh police in connection with a criminal case registered against the company. This is the second time Pinckney has been arrested. He was arrested by the Kerala police last year along with two company directors for alleged financial irregularities. He was produced before a Kurnool district court on Tuesday which sent him in 14-day judicial custody. Meanwhile, in a statement, Amway said it was “aggrieved and shocked” as the arrest was “unwarranted” and the case in which action has been taken was filed in December 2013 about which the company had no prior information. Coming to the defense of the Amway India chairman, Ficci said the issue threatened to adversely impact the Indo-US business relations even as it urged the authorities to provide clarity between “fly-by-night operators and legitimate business runners”. “Ficci condemns this arrest. This move has been initiated by a consumer complaint and could have been easily addressed as a consumer redressal since there was no criminality involved. We have been persistently asking for a clear and independent regulatory framework for the direct selling Industry in India. This uncalled action might also have an adverse impact on India-US business relationships,” A Didar Singh, secretary general, Ficci, said. According to Kurnool SP Raghurami Reddy, the Amway India chief was arrested in Gurgaon on Monday and was brought to Kurnool. “The CEO has been booked under the Prize Chits and Money Circulation Schemes (Banning) Act, besides charges of cheating as well as extortion under relevant sections of the IPC,” Reddy said. Calling on for a separate law for direct selling companies, the Indian Direct Selling Association (IDSA) said that there is an urgent need to amend the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, as due to its ambiguities, authorities are unable to distinguish genuine direct selling companies from pyramid schemes.
